Answer:
It will take 5 years and 259 days.
Explanation:
Giving the following information:
A new CEO promises to increase company sales by 7% per year from its current level of $5,435,678 to a target level of $8 million.
We need to use the following variation of the final value formula:
FV= PV*(1+i)^n
Isolating n:
n=[ln(FV/PV)]/ln(1+r)
PV= 5,435,678
FV= 8,000,000
i= 0.07
n= ln(8,000,000/5,435,678) / ln(1.07)
n= 5.71
To be more accurate:
0.71*365= 259
It will take 5 years and 259 days.
